Drilling at Marengo Mining"s Yandera copper-molybdenum project in Papua New Guinea has intersected broad zones of disseminated mineralisation.

zThe first two diamond drill holes have been completed and further drilling is currently in progress within the Gremi Zone of copper-molybdenum mineralisation, one of the principal mineralised zones at Yandera.

Preliminary inspection of the drill core has confirmed that both holes have successfully intersected broad zones of disseminated copper-molybdenum mineralisation. Samples have been submitted for assay, and first results are expected to be released this month.

The aim of the current diamond drilling program, which is planned to continue until at least October, is to upgrade Marengo's confidence of the Gremi and Omora mineralised zones. These two zones were selected for the initial work, as they have good near-surface mineralisation and with expected low strip ratios, could form the basis for a likely "starter pit" scenario.

The two holes which have been completed are part of a nine hole program over the Gremi zone.

One 250 metre drill hole, intersected sporadic copper and molybdenum mineralisation from 98 metres to 179 metres (downhole).

The second hole drilled to 417 metres intersected zones of mineralisation from 22 metres to 53 metres and 218 metres to 399 metres.

The first two holes were drilled on what was previously determined to be the south-eastern limit of the Gremi Zone, however with the intersection of mineralisation in both holes, the Gremi Zone now remains open in that direction.

A second drill rig at the site will give Marengo two rigs operating around the clock for the rest of the field season.

On completion of the Gremi and Omora drilling, the focus will shift to the nearby deeper, but higher grade Imbruminda zone (north of Gremi).

Marengo has engaged Golder Associates to assist it with the Yandera Project, principally in the generation of an initial JORC compliant resource for the Gremi and Omora Zones.

Golder Associates is an internationally recognised leader in all aspects of earth engineering with over 80 offices worldwide.

The Yandera Project was first discovered by Australian Government geologists in the 1950s. It is located 95km south-west of the coastal town of Madang , in Papua New Guinea , and represents one of the South-west Pacific region's largest undeveloped copper-molybdenum porphyry deposits.

The Yandera porphyry is an extremely large mineralised system containing eight coherent mineralised zones identified to date from 102 diamond drill holes over an area of more than 12sqkm, all of these zones remain open in one or more directions.